A Funny Thing Happened on Wednesday Afternoon

The Volatility Index just sent a warning to short-term traders. [Jeff Clark's Market Minute]( A Funny Thing Happened on Wednesday Afternoon By Jeff Clark, editor, Market Minute The Volatility Index (VIX) just sent a warning to short-term traders. Over the past two weeks, the S&P 500 has been cruising to one new high after another. The index has closed higher for 11 of the last 12 trading days. Meanwhile, the VIX has been falling. That’s not a surprise. Indeed, that’s what is supposed to happen. Stocks go up while volatility falls – thereby confirming the rally in stocks. But, a funny thing happened on Wednesday afternoon… Recommended Link [Legendary-Trader Unveils “Magic Pattern”]( [image]( >It’s responsible for the greatest achievements in stock market history. It helped Paul Tudor Jones pocket $100 million. It helped Jim Simons generate a return big enough to turn $1,000 into $22 million. And it helped Jeff Clark nail over 1,000 winners. Of course, these legends have kept silent about their secrets. But today, not only will Jeff offer a rare-glimpse at the “Magic Pattern” but he’ll also reveal how it could give you a shot at trades big enough to deliver 490% in the next 30 days. [Go here now for all the details.]( -- The Volatility Index Rallied At 1:45pm ET, just as Fed Chairman Jerome Powell took the stage at the New York Times DealBook conference, the S&P 500 was trading at 6065 – up 15 points for the day. The VIX was at 13.15 – down 1% on the session. Once it became obvious the Fed Chairman was not going to say anything hawkish about the direction of interest rates, traders started buying stocks. The S&P 500 gained another 22 points during the final two hours of the session. The index closed at its highest point – ever. Oddly though, the Volatility Index rallied in the final two hours as well. The VIX reversed the day’s losses, pressed into positive territory, and finished the day at 13.45 – up 1.13%. Of course, we don’t want to read too much into the action of just one indicator during a two-hour window. But, when the VIX rallies along with stock prices, it is often a warning sign that the rally will soon reverse. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. It’s also concerning that VIX call options are trading for about 10x the price of the equivalent put options. We’ve seen how this condition usually leads to a short-term rally in the VIX. And, a rising VIX usually goes along with a falling stock market. None of this means that the stock market can’t press higher in the weeks to come, or that the widely anticipated “Santa Claus rally” won’t happen this year. Wednesday’s action in the VIX, though, does suggest the stock market is headed for some short-term weakness. And, the Santa Claus rally will likely start from a lower level. Traders should brace for at least a short-term pullback. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use]( | [Unsubscribe](